Judge: Michael Shultz, Case: TS02103, Date: 2023-03-28 Tentative Ruling

Case Number: TS02103    Hearing Date: March 28, 2023    Dept: A

TS02103 Victory Management Group, LLC v. Randy S. Higashi, Chiropractic, Inc., Randy S. Higashi, D.C.

Tuesday, March 28, 2023, at 8:30 a.m.

[TENTATIVE] ORDER GRANTING MOTION TO SET ASIDE DISMISSAL AND GRANTING PETITION TO CONFIRM ARBITRATION AWARD

BACKGROUND

              Plaintiff commenced this action on December 13, 2017, with a Petition to Compel Arbitration pursuant to a written agreement wherein Plaintiff contracted to provide management services to Defendants.  On November 1, 2021, the Hon. Thomas D. Long held a status conference regarding arbitration. Plaintiff’s counsel represented that the arbitration was set for November 30, 2021. Upon agreement with Plaintiff’s counsel, Judge Long ordered the complaint dismissed without prejudice.

              Plaintiff requests an order to set aside the November 30, 2021, dismissal and to confirm the arbitration award issued by the American Arbitration Association (“AAA”) on May 9, 2022, and to enter judgment pursuant to the award in favor of Plaintiff for $511,625.59.

              Plaintiff timely served Defendants with the moving papers by overnight delivery on February 13, 2023. No opposition has been filed. The motion was continued from March 16, 2023, at Defendant’s request.

DISCUSSION

              The Court vacates the dismissal of November 30, 2021, which was improvidently made as the arbitration proceeding had not concluded. (Bastajian v. Brown (1941) 19 Cal.2d 209, 214 ["Independently of statute a trial court has power to correct mistakes and to annul orders and judgments inadvertently or improvidently made."]).

              The arbitration proceeding between the parties concluded on May 9, 2022, at which time the arbitrator issued an award in favor of Plaintiff consisting of $505,375.59 and costs of $6,250 (arbitrator’s fees), for a total award of $511,625.59. (Motion, Ex. 2, .pdf 35). The Court shall confirm an arbitration award as made unless "it corrects the award and confirms it as corrected, vacates the award or dismisses the proceeding.” (Code Civ. Proc., § 1286). Defendants have not petitioned to correct or vacate the award. Accordingly, judgment is entered in conformity with the arbitration award. (Code Civ. Proc., § 1287.4).    

              Plaintiff also requests that accrued interest totaling $38,768.80 be added to the award. (Decl. of Jack R. Scharringhausen, 7:6-10). However, the award does not provide for post-award, accrued interest prior to entry of judgment, nor has Plaintiff cited any statute that permits accrued interest under these circumstances. Civil Procedure section 1286 gives the Court only four choices: "It may (1) confirm the award, (2) correct the award and confirm it as corrected, (3) vacate the award, or (4) dismiss the proceedings. (Sunnyvale Unified School Dist. v. Jacobs (2009) 171 Cal.App.4th 168, 175, 89 Cal.Rptr.3d 546.) … the court must confirm the award, unless it either vacates or corrects it.” (Law Offices of David S. Karton v. Segreto (2009) 176 Cal.App.4th 1, 8). As Plaintiff has not provided any grounds for correction of the award, the Court confirms the award as made without inclusion of accrued interest.